About CC0: Platform or Brand?

The day before yesterday, Moonbirds announced that the project would be converted to CC0, which caused a lot of discussion. It happened that the author also did some homework and thinking about CC0 during this time, and just made a summary. Welcome to discuss and make a brick.

What is CC0

CC0 is short for Creative Commons Zero Copyright Agreement. By adopting this agreement, the author declares to give up all copyrights of the creation, and the creation enters the public domain and becomes the common intellectual property of mankind.

In the vernacular, everyone can use CC0 creations , including commercial and secondary creations. take a chestnut

BAYC opens IP Rights to the owner, Li Ning bought BAYC #4102, so Li Ning can put this monkey on posters and T-shirts (other monkeys that don’t have it will not work)

Since mfers is a CC0 protocol, you can use 10,000 mfers freely, whether you hold mfers or not, including for your own use (for printing T-shirts), for commercial use (for selling T-shirts), and for secondary creations… According to incomplete statistics, More than 50 mfers derivatives.

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CC0 Project: The ceiling is high, but the operation is also more difficult

Based on the deduction of CC0 capabilities, this conclusion can be drawn: the ceiling is high (platform business model), but the operation difficulty is also greater

The author tried to summarize the following 3 points with a picture:

Goal: The goal of the regular NFT project is to build a brand (Brand), referring to Nike and Disney; the ultimate goal of the CC0 project is to become a platform with network effects (Platform), referring to Amazon and Alibaba

Differences in goals lead to differences in project structure and business model

  1. Project structure: The conventional NFT project is more like a brand company with a relatively simple structure; while the CC0 project is more like a platform, incubating countless derivative projects as infrastructure, and these derivative projects feed back the infrastructure and form a multi-stakeholder ecosystem. And DAO Token becomes the token of this ecosystem, increasing in value with the development of the platform
  2. Business model: Brand looks at Sales Revenue, and Platform also has GMV and Ads Revenue, with 2 more drivers and greater influence

User perspective: DAO Token can lower the user’s participation threshold and allow users to enjoy the benefits of the entire platform; but because there is no IP exclusivity, not every user likes CC0

Of course, the CC0 project is more difficult to operate, and if it is not done well, it will have a negative impact

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The project structure is more complex, and there are more stakeholders (you can compare the organizational structure of the brand company and Alibaba), which is a very test of the operational capabilities of the project party and DAO.

A positive cycle of “CC0 project→derivatives→CC0 project” needs to be established, otherwise the cold start of derivatives may be unsuccessful and the CC0 project will become weaker and weaker

The author guesses that Moonbirds announced that the project will be converted to CC0 and established a DAO, which is to prepare for the evolution into a platform (Platform), raise the ceiling of the project, and find a way of differentiation from Yuga / BAYC.

Let’s start from three aspects, project structure, business model and user rights.

Project structure

It can be seen that compared with conventional NFT projects, the CC0 project has added DAO and Token Economy in the process of platform evolution.

Why DAO is needed: This ecosystem needs an operator, which can not only help incubate derivative projects, but also design a mechanism for derivative projects to feed back to the original project, and also allow all users to participate in helping to spread. Therefore, there are 3 stakeholders (original projects, derivative projects, corresponding users), and there are a large number of them. At present, DAO is the best choice for this operator.

Why do we need Token Economy: As mentioned above, there are many stakeholders in DAO, and there needs to be a mechanism to coordinate the distribution of benefits. ERC20 Token is the best choice.

The operational capabilities of the DAO and how the Token Economy is designed are critical. Theoretically, the ceiling of the platform is higher, but because DAO and Token Economy do not have CC0 Best Practice yet, this will be the biggest challenge.

  1. This is also what users worry about Moonbirds the most. DAO is not Ready. But from the perspective of CEO KRO, CC0 may also be the best way to survive and grow in a bear market. go big or go home, who knows?

business model

Let’s disassemble the Business Model formula

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It can be seen that CC0 compared to conventional projects

In addition to Sales Revenue, there are GMV and Ads Revenue, with 2 more drivers

Same as Sales Revenue

  • Based on derivative projects (derivative) and tokens, it can bring greater volume and communication power, thereby driving secondary sales
  • A single project has limited live periods, but a steady stream of derivatives can extend the vitality of the entire ecosystem
  • There is an image metaphor about CC0, just like paper citations, the more you are cited, the greater your influence and the more valuable you are.

More Ads Revenue: DAO to incubate and promote derivative projects (derivative), can collect advertising fees. And it can be paid in the form of ERC20 Token to strengthen the Token value of the ecosystem. This is also the core profitability of the platform model.

User rights

We use a table to compare the user rights of regular projects and CC0 projects

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can be seen

Benefits added by CC0 Project

  • DAO Token can lower the user’s participation threshold and allow users to enjoy the benefits of the entire platform

Increased risk of CC0 Project

  • Each user owns the IP of CC0, and the owner has no exclusive rights in this piece. That is to say, IP rights are diluted.
  • Since there is no IP exclusivity, it may be used by some unpopular groups, which can negatively affect the entire project. Big V pranksy publicly stated that she did not want to see extremist groups use her NFT image

Other Important Questions Q&A

Q: The emergence of a large number of derivatives and everyone can use IP Rights, will it affect the value of the CC0 project itself?

A: If something is popular all over the world, the top of the ecological chain must be genuine. Nike Air Jordan is a good example. There are so many fakes, but the real ones can still sell for high prices. In addition, since the NFT (Non-Fungible Token) itself can be confirmed on the chain, the NFT project can naturally operate both the Token and IP dimensions at the same time. Compared with the traditional business world, which has only one IP dimension, it can have a more flexible operation method. This is also CC0 Advantages of NFTs.

Q: What kind of projects are suitable for CC0?

A: CC0 projects need strong copying and rebroadcasting capabilities, and those with strong culture and meme are more suitable (refer to mfers)

Q: Non-CC0 projects can also be used as platforms to issue tokens, such as yuga labs

A: This is also the reason why yuga labs is the top 1 in this industry. It is really amazing. The route of yuga labs is to build a brand matrix, and then use Metaverse as a platform to raise its ceiling, issue coins to acquire more new users, and at the same time build its own ecosystem, every step of the way is very accurate. So the answer to this question is that CC0 projects need to have DAO and Token by default, and other projects need to create another platform capability to issue Token

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/about-cc0-platform-or-brand/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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